California’s Trial Run for Cap-and-Trade Auction

Usually pool reports are reserved for events with the President. On Thursday, yours truly got to read the Pool Report on the California Air Resources Board Cap-and-Trade Allowance Auction Experience.

The dress rehearsal apparently went off fairly well. The two pool reporters, Carolyn Whetzel of BNA’s Daily Environment Report and Dale Kasler of the Sacramento Bee, said that the auction platform was easy to use.

“Bidding for carbon allowances is quick and easy – at least in practice, when you aren’t spending real money,” wrote Kasler. “It took just a few minutes to complete the process.”

Kasler “hemmed and hawed for a couple minutes as to what kind of bid to place, but even with fake money I decided to go conservative. I placed a bid at $18 apiece for ten lots (10,000 tons of 2013 carbon emissions). I hit the “confirm” button and my bid showed up on the screen. I put in a second bid at $19, for 15 lots (15,000 tons), repeated the process and I was done.”